Holding(s) in Company

Baar, 22 January 2015 – ALTIN AG (SIX: ALTN, LSE: AIA), the
Swiss alternative investment company listed on the London and Swiss
stock exchanges, today discloses its entire hedge fund portfolio
holdings as part of its policy of full transparency to investors. The
portfolio, featuring more than 40 underlying hedge funds, is
particularly well diversified and has a NAV performance of +208.70%1
since its inception in December 1996.

ALTIN continues to deliver solid outperformance

The ALTIN share price was up +8.60% and +10.20% on the Swiss (SIX) and
London (LSE) exchanges respectively in 2014. Thanks to the permanent
capital base provided by its structure, the ALTIN portfolio can be
allocated to funds that require a slightly longer lock-up but offer
potentially higher returns, without incurring any liquidity mismatch.
The portfolio remains however highly liquid, with 62.2% of assets
invested in funds with monthly or better liquidity, allowing the manager
to make allocation shifts when deemed necessary. The ALTIN NAV per share
was up +5.75% over 20141, clearly outperforming the HFRI
index (+3.19%).

The ALTIN portfolio produced a positive return over the last quarter of
the year, ending 2014 well above 5%, which puts it significantly ahead
of hedge fund and fund of hedge fund indices. Arguably, the most
important macro development during the quarter was the continuing and
accelerating trend in the collapse of oil prices, which led to bouts of
volatility and a re-pricing of several assets. For hedge funds, the
quarter actually started on a difficult note, with three distinct and
unrelated events leading to losses across virtually all strategies,
before some of them recovered. First of all, on the first day of October
many investors, mainly hedge funds, lost a legal bid to force Fannie Mae
and Freddie Mac to share profits with private shareholders. Although
this is not the last word on that battle, the ruling has led to dramatic
losses in the common and preferred shares of the two bailed-out
companies. This impacted several credit and event-driven funds to
various degrees. Secondly, AbbVie Inc and Shire Plc agreed to terminate
their merger deal, with the former paying about USD 1.6m in break-up
fees. Shire, a large position in many event-driven funds, lost roughly
30% on that day and many other so-called tax-inversion deals saw their
spreads widen. This led to relatively large losses across the Event
Driven space, which was the largest negative contributor to the
portfolio for the quarter. Finally, the first half of October saw an
accelerating market correction, led by energy stocks, and a run to
safety as fears on global growth suddenly reappeared.

The markets went into reverse during the second half of the month and
into November led by a strong third-quarter earnings season as well as
good US economic data and an unexpected dovish move by the Bank of
Japan. Volatility re-appeared in December and the last month of the year
displayed a similar V-shape correction as October, this time led by an
accelerating drop in oil prices accompanied by renewed concerns stemming
from the political situation in Greece. On average, Equity Hedge
managers did not cut their losses during the corrections, albeit they
did remodel their portfolio to focus on their highest convictions, which
means that they managed to eventually erase their losses and produce
positive returns over the quarter. Conversely, going through these
seesaw markets discretionary macro managers, especially the most
trading-oriented ones, tended to cut their pro-cyclical positions as
they reached their stop-loss triggers. As a consequence they partially
missed one or both of the rebounds and ended the quarter in negative
territory. It is fair to say that the shining stars of the quarter were
the systematic macro and trend following managers who managed on average
to produce double-digit returns for the period. They capitalised on
several currency, fixed income and commodities trends, and unlike
discretionary managers did not implement damaging stop-loss measures.

The top contributors for the quarter were quite diverse, again showing
the diversity of sources of return in ALTIN. Best of all was a power
trader who rightly predicted warmer weather towards the end of the year
and strongly capitalised on subsequent collapsing electricity prices.
Just behind there is a Systematic Macro fund, which is actually by far
the best contributor in 2014. Its approximately two week trading horizon
has been very much in sync with the prevailing market conditions of the
last two years. More generally 2014 was a good year for most Systematic
Macro funds, including trend followers, as one could see strong trends
in fixed income, currencies and in the second half of the year, energy.
In third place, we have a Chinese Equity Long /Short manager, which
benefited strongly from the rally in A-shares that followed the opening
of the Shanghai-Hong Kong Connect, the cross-border investment channel
that allows investors in each market to trade on the other market using
their local brokers and clearing houses. In fourth position was an
Equity Long/Short manager specialised in bio-technology. This manager
was certainly helped by the very good performance of the overall sector,
but its main performance drivers were actually very idiosyncratic as its
low correlation to the index this year shows. Finally, in fifth position
one finds a pure trend-following manager. The bottom of the list was
mainly made up of Event Driven managers, especially in the credit space.
In the last quarter, following the events described above, they
generally erased all their year-to-date returns. Negative contributors
also include a grain trader who was caught in the autumn price rally,
and discretionary macro traders who tended to lose money due to their
short-duration/long equity positioning.

Top contributors YTD as of 31.12.2014 (estimated data)

Two Sigma Compass Enhanced Cayman Fund Ltd +2.08%

ZP Offshore Utility Fund Ltd +0.93%

Golden China Fund +0.82%

Top detractors YTD as of 31.12.2014 (estimated data)

Paulson Enhanced Ltd -0.41%

ABD Managers plc Tactical Discretionary Macro UCITS Fund -0.41%

Providence MBS Fund Ltd -0.29%

ALTIN: Portfolio profile to remain stable

For the time being the portfolio is expected to remain fairly stable and
at this stage anticipated hedge fund reallocations should not
dramatically change the profile of the Fund. It is to be emphasised that
a significant portion of the portfolio is liquid enough to quickly take
advantage of new investment opportunities should they arise during the
course of the coming months.

ALTIN is a closed-ended and fixed capital fund and as such it is not
faced with redemption requests. This provides the investment manager
with the opportunity to select the best risk/reward opportunities in the
hedge fund universe. Investors can freely buy and sell ALTIN shares on a
daily basis on the London or Swiss stock exchanges, without the need to
redeem at fixed redemption dates.

ALTIN AG was launched in 1996 and is listed on the SIX Swiss Exchange as
well as on the London Stock Exchange. It ranks among Switzerland’s
leading alternative investment companies. Currently, ALTIN is invested
in more than 40 hedge funds representing diverse investment strategies.
Its objective is to generate an absolute compound annual return in USD
terms with lower volatility than equity markets. Thanks to these
characteristics and a low correlation with equity markets, ALTIN shares
provide an ideal complement to all diversified portfolios.